“Our third quarter results demonstrate the progress we have made on our commitment to improve financial performance by reducing operational costs, optimizing our capital structure, and strengthening our full-service model while building broader sales channels for our products and technology,” said Martin Craighead, Baker Hughes Chairman and Chief Executive Officer.

“Revenue for the third quarter declined 2% sequentially, primarily as a result of steep activity reductions and project delays in our Gulf of Mexico, West Africa, and Norwegian deepwater operations. Despite these activity headwinds, the improvement in the quarter is evident through a $249 million, or 44%, sequential reduction in our operating losses, driven mainly by the decisive actions we took to right-size our operating structure. Furthermore, this quarter we exceeded our original cost reduction goal for year-end, setting a new annualized cost savings target of $650 million for 2016.

“Looking ahead, in the fourth quarter of 2016 we expect activity in North America to modestly increase, as our customer community slowly begins to ramp up activity in what remains a tough pricing environment. Internationally, we are forecasting activity declines and pricing pressure to continue, with minimal year-end, seasonal product sales unlikely to offset those declines.

“While we expect the market conditions to remain challenging near term, the structural changes we implemented in the past six months have created a stronger foundation for delivering on our objectives and positioning the company for growth. I am pleased with our progress and, while we have more work ahead of us, I am confident that we have the right people, technology, and strategy to grow profitably and maximize return on invested capital.”

2016 Third Quarter Results

Revenue for the quarter was $2.4 billion, a decrease of $55 million, or 2%, sequentially. Compared to the same quarter last year, revenue is down $1.4 billion, or 38%. Sequentially, revenue was impacted by activity declines, primarily in the Gulf of Mexico, Norway, and West Africa deepwater operations, and increasing market pricing pressures. This was partially offset by pockets of activity increase, mainly in the U.S. onshore, Saudi Arabia, Canada, and Kuwait.

On a GAAP basis, net loss attributable to Baker Hughes for the third quarter was $429 million, or $1.00 per diluted share, compared to $911 million, or $2.08 per diluted share, in the second quarter of 2016. The third quarter includes after-tax charges of $365 million, or $0.85 per diluted share, related to asset impairments, restructuring, litigation settlements, and goodwill impairment.

Adjusted net loss (a non-GAAP measure) for the quarter was $64 million, or $0.15 per diluted share. Adjusted net loss excludes the above adjustments totaling $365 million after-tax, or $0.85 per diluted share. A complete list of the adjusting items and associated reconciliation has been provided in Table 1a.

Adjusted EBITDA (a non-GAAP measure) was $269 million for the quarter, an increase of $419 million, or 279% sequentially, and down $253 million, or 48%, compared to the third quarter of 2015.

Cash flows provided by operating activities were $119 million for the quarter, a decrease of $3.5 billion sequentially and $309 million year-over-year. Free cash flow (a non-GAAP measure) for the quarter was $109 million, a decrease of $3.5 billion sequentially and $239 million year-over-year. The sequential decrease in cash flows is driven primarily by Halliburton’s payment of the $3.5 billion termination fee in the second quarter of 2016. Compared to the prior year, the decline is driven by the increase in operational losses as a result of reduced revenue.

For the quarter, capital expenditures were $70 million, unchanged sequentially, and down $108 million, or 61%, compared to the third quarter of 2015. The reduction in capital expenditures is attributable to reduced activity levels and our continued focus on capital discipline. Depreciation and amortization expense for the quarter was $262 million, a decline of $43 million, or 14%, sequentially, and down $170 million, or 39%, compared to the same quarter last year. The decline in depreciation and amortization expense is primarily driven by asset impairments and lower capital spending.

Corporate costs were $78 million in the quarter, compared to $29 million in the prior quarter and $26 million in the third quarter of 2015. The increase in corporate costs is mainly due to litigation settlements in the third quarter.

Income tax expense was $70 million for the quarter, an effective tax rate of (19.4%), compared to (20%) in the second quarter of 2016. As a result of geographic mix of earnings and losses, goodwill impairment, asset impairments, and restructuring charges, and other discrete tax items, our tax rate has been, and will continue to be, volatile until the market stabilizes.

In the third quarter we repurchased approximately 5.3 million shares on the open market, totaling $263 million.

North America

North America revenue of $674 million for the quarter increased 1% sequentially. The activity increase in the U.S. onshore and the seasonal uplift in Canada were almost entirely offset by a steep decline in activity in the Gulf of Mexico. Despite the increase in activity, the competitive landscape remains challenging across the entire segment.

Operating loss before tax for the third quarter was $65 million, a $246 million improvement compared to the prior quarter. The reduced losses were driven primarily by $158 million of inventory-related adjustments in the prior quarter not repeating, cost savings from recent restructuring actions, including lower depreciation and amortization expense from impairments, and a reduced provision for excess inventory. The current quarter also includes a $28 million benefit from non-recurring items.

Adjusted operating loss before tax (a non-GAAP measure), which excludes the inventory-related adjustments, was $74 million for the third quarter, a $79 million improvement compared to the $153 million in the prior quarter.

Latin America

Latin America revenue of $243 million increased 3% sequentially against the backdrop of a 2% rig count reduction. The increase in revenue was driven mainly by a one-time product sale in the Andean area, partially offset by reduced activity in the region, primarily in Venezuela and Mexico.

Operating profit before tax for the third quarter was $20 million, an increase of $263 million, compared to an operating loss before tax of $243 million in the prior quarter. The improvement in profitability is driven by $130 million of provisions for doubtful accounts and $88 million of inventory adjustments in the prior quarter not repeating, lower provision for excess inventory, and cost savings from restructuring actions, including reduced depreciation from impairments. The current quarter also includes a high-margin, one-time product sale in the Andean area and a $3 million benefit from non-recurring items.

Adjusted operating profit before tax (a non-GAAP measure), which excludes the inventory adjustments, was $16 million for the third quarter, a $171 million increase compared to the $155 million operating loss before tax in the prior quarter.

Europe/Africa/Russia Caspian

Europe/Africa/Russia Caspian revenue of $519 million for the quarter decreased 11% sequentially, primarily due to reduced activity and unfavorable exchange rates in West Africa and reduced activity in Norway, mainly as a result of project timing and labor union strikes.

Operating profit before tax for the third quarter was $22 million, an increase of $279 million compared to an operating loss before tax of $257 million in the prior quarter. Despite lower revenue, profitability improved sequentially, mainly as a result of $152 million of inventory adjustments and $58 million of valuation allowances on indirect taxes and provisions for doubtful accounts in the second quarter not repeating. The current quarter also includes cost savings from restructuring actions, including reduced depreciation and amortization expense, lower provision for excess inventory, and a $5 million benefit from non-recurring items.

Adjusted operating profit before tax (a non-GAAP measure), which excludes the inventory adjustments, was $13 million for the third quarter, a $118 million increase compared to the $105 million operating loss before tax in the prior quarter.

Middle East/Asia Pacific

Middle East/Asia Pacific revenue of $649 million for the quarter was relatively flat sequentially. Activity declines and price erosion across most of the segment were offset by pockets of activity growth, primarily in Saudi Arabia and Kuwait.

Operating profit before tax for the third quarter was $71 million, an increase in profitability of $213 million compared to operating loss before tax of $142 million in the prior quarter. Despite price deterioration, profitability improved as a result of $125 million of inventory adjustments in the prior quarter not repeating, cost savings from restructuring actions, including reduced depreciation and amortization expense, lower provision for excess inventory, and a $6 million benefit from non-recurring items.

Adjusted operating profit before tax (a non-GAAP measure), which excludes the inventory adjustments, was $63 million for the third quarter, an increase in profitability of $80 million compared to adjusted operating loss before tax of $17 million in the prior quarter.

Industrial Services

Industrial Services revenue of $268 million for the quarter decreased 2% sequentially. The decrease in revenue was mainly related to project delays in the pipeline inspection and maintenance business, causing an earlier-than-usual seasonal decline.

Operating profit before tax for the third quarter was $30 million, an increase of $73 million compared to operating loss before tax of $43 million in the prior quarter. The increase in profitability was driven by $47 million of inventory adjustments and $7 million of provisions for doubtful accounts in the second quarter not repeating. The current quarter also includes cost savings from restructuring actions, including reduced depreciation and amortization expense, lower provision for excess inventory, and a $3 million benefit from non-recurring items.

Adjusted operating profit before tax (a non-GAAP measure), which excludes the inventory adjustments, was $26 million, an improvement of $22 million compared to $4 million in the prior quarter.

Please see Tables 1a and 1b for a reconciliation of GAAP to non-GAAP financial measures. A reconciliation of net income (loss) attributable to Baker Hughes to Adjusted EBITDA is provided in Table 2. Supplemental segment financial information for revenue, adjusted operating profit (loss) before tax (a non-GAAP measure), and adjusted operating profit before tax margin is provided in Tables 5a and 5b. Free cash flow is defined as net cash flows provided by (used in) operating activities less expenditures for capital assets plus proceeds from disposal of assets.

Consolidated Condensed Statements of Income (Loss)1

Three Months Ended

September 30,

June 30,

(In millions, except per share amounts)

2016

2015

2016

Revenue

$

2,353

$

3,786

$

2,408

Costs and expenses:

Cost of revenue

2,059

3,375

3,112

Research and engineering

91

110

99

Marketing, general and administrative

203

211

222

Impairment and restructuring charges

304

98

1,126

Goodwill impairment

17

—

1,841

Merger and related costs

—

93

78

Merger termination fee

—

—

(3,500

)

Total costs and expenses

2,674

3,887

2,978

Operating loss

(321

)

(101

)

(570

)

Loss on early extinguishment of debt

—

—

(142

)

Interest expense, net

(39

)

(55

)

(48

)

Loss before income taxes

(360

)

(156

)

(760

)

Income taxes

(70

)

—

(152

)

Net loss

(430

)

(156

)

(912

)

Net (income) loss attributable to noncontrolling interests

1

(3

)

1

Net loss attributable to Baker Hughes

$

(429

)

$

(159

)

$

(911

)

Basic and diluted loss per share attributable to Baker Hughes

$

(1.00

)

$

(0.36

)

$

(2.08

)

Weighted average shares outstanding, basic and diluted

430

439

438

Depreciation and amortization expense

$

262

$

432

$

305

Capital expenditures

$

70

$

178

$

70

1

Beginning in 2016, all merger and related costs are presented in a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs were reclassified to conform to the current year presentation.

Consolidated Condensed Statements of Income (Loss)1

Nine Months Ended September 30,

(In millions, except per share amounts)

2016

2015

Revenue

$

7,431

$

12,348

Costs and expenses:

Cost of revenue

7,829

11,301

Research and engineering

292

366

Marketing, general and administrative

632

749

Impairment and restructuring charges

1,590

747

Goodwill impairment

1,858

—

Merger and related costs

180

204

Merger termination fee

(3,500

)

—

Total costs and expenses

8,881

13,367

Operating loss

(1,450

)

(1,019

)

Loss on early extinguishment of debt

(142

)

—

Interest expense, net

(142

)

(162

)

Loss before income taxes

(1,734

)

(1,181

)

Income taxes

(589

)

242

Net loss

(2,323

)

(939

)

Net loss attributable to noncontrolling interests

2

3

Net loss attributable to Baker Hughes

$

(2,321

)

$

(936

)

Basic and diluted loss per share attributable to Baker Hughes

$

(5.31

)

$

(2.13

)

Weighted average shares outstanding, basic and diluted

437

438

Depreciation and amortization expense

$

921

$

1,326

Capital expenditures

$

226

$

751

1

Beginning in 2016, all merger and related costs are presented in a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs were reclassified to conform to the current year presentation.

Adjusted net loss is a non-GAAP measure comprised of net loss attributable to Baker Hughes, excluding the impact of certain identified items. The Company believes that adjusted net loss is useful to investors because it is a consistent measure of the underlying results of the Company’s business. Furthermore, management uses adjusted net loss as a measure of the performance of the Company’s operations.

Goodwill impairment in two of the operating segments: North America for $19 million and $1,530 million before-tax and Industrial Services for ($2) million and $311 million before-tax during the third and second quarters of 2016, respectively.

4

Merger and related costs recorded in 2016 and 2015 included amounts under our retention programs and obligations for minimum incentive compensation, which based on meeting eligibility criteria, have been treated as merger and related expenses.

5

Merger termination fee paid by Halliburton on May 4, 2016, representing the termination fee required to be paid pursuant to the Merger Agreement.

6

Inventory adjustments include costs to write off and dispose of certain excess inventory.

7

Loss on early extinguishment of debt associated with the purchase of outstanding bonds of $1 billion of face value.

8

During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016.

9

Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016.

10

Represents the tax effect of the aggregate identified items, generally based on statutory tax rates, offset by valuation allowances and the benefits of certain tax credits.

Table 1b:Reconciliation of GAAP and Non-GAAP Financial Measures

The following table reconciles net cash flows provided by operating activities, which is the directly comparable financial result determined in accordance with Generally Accepted Accounting Principles (GAAP), to free cash flow (a non-GAAP financial measure). Free cash flow is defined as net cash flows provided by (used in) operating activities less expenditures for capital assets plus proceeds from disposal of assets. Management is providing this measure because it believes that such measure is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of liquidity. Free cash flow does not represent the residual cash flow available for discretionary expenditures.

EBIT, EBITDA, and Adjusted EBITDA (as defined in the calculations above) are non-GAAP measures. Management is providing these measures because it believes that such measures are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance.

Goodwill impairment in two of the operating segments: North America for $19 million and $1,530 million before-tax and Industrial Services for ($2) million and $311 million before and after-tax during the third and second quarters of 2016, respectively.

4

Merger and related costs recorded in 2016 and 2015 included amounts under our retention programs and obligations for minimum incentive compensation, which based on meeting eligibility criteria, have been treated as merger and related expenses.

5

Merger termination fee paid by Halliburton on May 4, 2016, representing the termination fee required to be paid pursuant to the Merger Agreement.

6

Inventory adjustments include costs to write off and dispose of certain excess inventory.

7

Loss on early extinguishment of debt associated with the purchase of outstanding bonds of $1 billion of face value.

8

During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016.

9

Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016. In the second quarter of 2015, a reversal was recorded in Corporate as the amount of claims made under a settlement agreement was less than originally expected.

Operating profit before tax margin is a non-GAAP measure defined as operating profit (loss) before tax divided by revenue. Management uses the operating profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance.

2

Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs have been reclassified to conform to the current year presentation.

Operating profit before tax margin is a non-GAAP measure defined as operating profit (loss) before tax divided by revenue. Management uses the operating profit before tax margin because it believes it is a widely accepted financial indicator used by investors and analysts to analyze and compare companies on the basis of operating performance.

2

Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs have been reclassified to conform to the current year presentation.

Table 4:Adjustments to Segment Operating Profit (Loss) Before Tax1

Three Months Ended

September 30,

June 30,

(In millions)

20162,4

20162,3

Adjustments to Operating Profit (Loss) Before Tax1

North America

$

(9

)

$

158

Latin America

(4

)

88

Europe/Africa/Russia Caspian

(9

)

152

Middle East/Asia Pacific

(8

)

125

Industrial Services

(4

)

47

Total Operations

(34

)

570

Corporate

41

—

Total

$

7

$

570

Nine Months Ended September 30,

(In millions)

20162,4

20152,4

Adjustments to Operating Profit (Loss) Before Tax1

North America

$

200

$

182

Latin America

84

12

Europe/Africa/Russia Caspian

143

—

Middle East/Asia Pacific

117

—

Industrial Services

43

—

Total Operations

$

587

$

194

Corporate

41

(13)

Total

$

628

$

181

1

The company believes that adjusting these identified items from the segment operating profit (loss) before tax provides investors and analysts a measure to compare companies more consistently on the basis of operating performance.

2

Inventory adjustments to write off and dispose of certain excess inventory of ($34) million and $621 million during the third and second quarters of 2016, respectively, across all the segments. In 2015 we also recorded inventory adjustments of $194 million with $171 million during the first quarter and $23 million in the second quarter.

3

During the second quarter of 2016, we reached a settlement with a third party on a firm purchase commitment resulting in a reversal of the loss recorded in the first quarter of 2016 in North America for $51 million.

4

Costs related to litigation settlements were recorded in Corporate during the third quarter of 2016. In the second quarter of 2015, a reversal was recorded in Corporate as the amount of claims made under a settlement agreement was less than originally expected.

Adjusted operating profit (loss) before tax is a non-GAAP measure defined as profit (loss) before income tax less interest expense and identified items as shown on Table 1a. Adjusted operating profit before tax margin is a non-GAAP measure defined as adjusted operating profit (loss) before tax divided by revenue. Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions.

2

Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs have been reclassified to conform to the current year presentation.

Adjusted operating profit (loss) before tax is a non-GAAP measure defined as profit (loss) before income tax less interest expense and identified items as shown on Table 1a. Adjusted operating profit before tax margin is a non-GAAP measure defined as adjusted operating profit (loss) before tax divided by revenue. Management uses each of these measures because it believes they are widely accepted financial indicators used by investors and analysts to analyze and compare companies on the basis of operating performance and that these measures may be used by investors to make informed investment decisions.

2

Beginning in 2016, we excluded merger and related costs from our operating segments. These costs are now presented as a separate line item in the consolidated condensed statement of income (loss). Prior-year merger and related costs have been reclassified to conform to the current year presentation.

Innovations to Earnings

The following section provides operational and technical highlights outlining the successes aligned to our strategy.

Efficient Well Construction

Baker Hughes improves drilling efficiency in the DJ Basin. Deployingits AutoTrak™ Curve rotary steerable system and drill bits, Baker Hughes significantly increased drilling efficiencies and cost savings for several key operators in Colorado'sDJ Basin. The technology drills 30% faster than conventional systems, which often face challenges steering and staying in the target zone. Baker Hughes' performance has led to market share gains in this basin.

Baker Hughes wins significant drilling awards and achieves milestone in Russia. Through consistent execution, improved efficiency, and unparalleled wellbore placement, Baker Hughes secured key awards in Russia, enabling it to expand its operational footprint to service 100 rigs—a milestone number for the company and more than double compared to the same quarter last year.

Baker Hughes wins two-year drilling contract to provide 100% of the directional drilling services for operator in Argentina.Baker Hughes will provide its AutoTrak™ eXact rotary steerable system, OnTrak™ integrated measurement-while-drilling and logging-while-drilling system, Co-Pilot™ drilling optimization service, and XTreme™ motors for two years in the Cuenca Neuquina basin. Baker Hughes displaced another service provider with this award.

Baker Hughes drills the longest horizontal and first extended-reach well in Brazil.Baker Hughes deployed its AutoTrak™ rotary steerable system, Talon™ PDC bit, and other reservoir navigation services to drill a 16,072-ft long tangent of 75.3° inclination and a horizontal oil-bearing reservoir section of 5,166 ft, with a net sand exposure of 78%. The entire reservoir section was successfully drilled to total depth in two runs using the same bit, which came out of the hole in like-new condition.

Baker Hughes achieves U.S. drilling record in the Utica Shale. Combining its drilling systems, drill bits, and drilling and completions fluids, Baker Hughes drilled 13,574 ft in one run — curve and lateral —setting a U.S. drilling record. As operators in the U.S. are in continuous search of improved efficiency, drilling long sections with curve and lateral in one run represents a significant achievement.

Baker Hughes wins three-year drilling and completions fluids contract in Thailand.Baker Hughes will provide drilling fluids and services for a major operator. This award increases the company’s market share in the region and strengthens its position as a leading technology innovator.

Baker Hughes wins multi-year drilling and completions fluids contract in Kuwait.Baker Hughes displaced another service provider to supply drilling fluids and services for two deep drilling rigs onshore Kuwait. The company was selected based on outstanding performance and service.

Baker Hughes enhances production with wireline services in the Middle East.Baker Hughes successfully enabled production in a well that had not produced since its initial completion several years ago. Previous sidetracking and acid stimulation attempts proved unsuccessful. Baker Hughes worked with the operator to develop a solution using its proprietary PulsFrac™ dynamic event modeling software and perforating services to re-complete this challenging well. The program was executed flawlessly and got the well back online to start producing at thousands of boe/day.

Baker Hughes wins three-year completions contract in Norway. Baker Hughes will provide lower completions systems and multi-zone intelligent production systems on at least two wells, with the opportunity to expand to up to 10 wells in the North Sea. Baker Hughes was selected based on its unrivaled track record in complex completions in the North Sea and its ability to meet tight delivery schedules from its world-class manufacturing facilities.

Baker Hughes wins three-year liner hanger contract for a major operator in Oman.Baker Hughes secured a contract for the provision of 7-in. and 4.5-in. liner hanger equipment and services, which displaced the incumbent service provider of 10 years. The award confirms Baker Hughes’ leading role in completions and wellbore intervention technology in Oman.

Baker Hughes wins 100% of an electrical submersible pumping system workover campaign for operator in Colombia.Baker Hughes will provide FLEXPump™ technology and CENtrilift XP™ Xtreme Performance motors for an operation in Colombia. Baker Hughes was selected based on past performance. The award displaces the incumbent service provider, who held 60% of the contractual assignation.

Baker Hughes wins upstream chemical award for heavy oil field in Canada. Baker Hughes will supply TRETOLITE™ demulsifiers, CRONOX™ corrosion inhibitors, and water treatment chemicals to a heavy oil facility with approximately 80 producing wells, an oil treating facility, and a water treatment plant. Baker Hughes was selected based on product performance and process improvements that significantly reduce well servicing costs. Baker Hughes displaced the incumbent after 25 years on site.

Baker Hughes wins upstream chemical award for new unconventional wells in Argentina. Baker Hughes will provide paraffin inhibition technology and services for two wells in an unconventional green field. The technology replaces an underperforming solution from a different provider. The win positions Baker Hughes favorably as development plans for this promising field unfold in 2017.

Baker Hughes wins two five-year upstream chemical contracts in Qatar. Baker Hughes will provide CRONOX™ corrosion inhibitors for gas producers in Qatar. One of the contracts displaced a competitor from all wet gas production operations.

Baker Hughes Process and Pipeline Services (PPS) collaborates with Wireline Services to open a new market — Offshore Riser Inspection. Working together, Baker Hughes PPS and Wireline Services engineered a new solution to help a major Gulf of Mexico operator measure the integrity of an offshore gas riser. By combining a unique inspection technology specifically designed to measure corrosion in “unpiggable” pipelines, nitrogen pumping services, and a wireline unit, Baker Hughes provided the operator with vital inspection data that was previously impossible to acquire. Based on this success and the growing need for operators to periodically test the integrity of their riser systems, the company received multiple orders for additional inspections.

Super-major extends chemicals contract with Baker Hughes in North America.Baker Hughes was awarded a five-year contract extension for its process chemicals applications at a refinery in North America. Key to keeping the business was demonstrating the value captured by the refiner as a result of improved monitoring and product enhancements.

Major operator extends chemicals contract with Baker Hughes in North America.Baker Hughes was awarded a five-year extension for its process chemicals, water treatment, and finished fuel treatment applications at a refinery in North America. The operator cited the company’s commitment to seek and deliver value as the primary driver for awarding the business.

Supplemental financial information can be found on the Company’s website at: www.bakerhughes.com/investor in the Financial Information section under Quarterly Results.

Conference Call and Webcast

The Company has scheduled an investor conference call to discuss management’s outlook and the results reported in today’s earnings announcement. The call will begin at 8:30 a.m. Eastern time, 7:30 a.m. Central time on Tuesday, October 25, 2016, the content of which is not part of this earnings release. A slide presentation providing summary financial and statistical information that will be discussed on the call will also be posted to the Company’s website and available for real-time viewing at www.bakerhughes.com/investor. The conference call will broadcast live via a webcast and can be accessed by visiting the Events and Presentations page on the Company’s website at:www.bakerhughes.com/investor. An archived version of the webcast will be available on the website through the end of December, 2016.

Forward-Looking Statements

This news release (and oral statements made regarding the subjects of this release, including on the conference call announced herein) contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, (each a “forward-looking statement”). The words “anticipate,” “believe,” “ensure,” “expect,” “if,” “intend,” “estimate,” “project,” “foresee,” “forecasts,” “predict,” “outlook,” “aim,” “target,” “will,” “could,” “should,” “potential,” “would,” “may,” “probable,” “likely,” and similar expressions, and the negative thereof, are intended to identify forward-looking statements. There are many risks and uncertainties that could cause actual results to differ materially from our forward-looking statements. These forward-looking statements are also affected by the risk factors described in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2015; Baker Hughes’ subsequent quarterly reports on Form 10-Q for the quarterly periods ended March 31, 2016, and June 30, 2016; and those set forth from time-to-time in other filings with the Securities and Exchange Commission (“SEC”). The documents are available through the Company’s website at: www.bakerhughes.com/investor or through the SEC’s Electronic Data Gathering and Analysis Retrieval (“EDGAR”) system at: www.sec.gov. We undertake no obligation to publicly update or revise any forward-looking statement.

Our expectations regarding our business outlook and business plans; the business plans of our customers; oil and natural gas market conditions; cost and availability of resources; economic, legal and regulatory conditions, and other matters are only our forecasts regarding these matters.

These forward-looking statements, including forecasts, may be substantially different from actual results, which are affected by many risks, along with the following risk factors and the timing of any of these risk factors:

Restructuring activities - the ability to successfully implement and adjust the restructuring activities and achieve their intended results.

Economic and political conditions - the impact of worldwide economic conditions; the effect that declines in credit availability may have on worldwide economic growth and demand for hydrocarbons; the ability of our customers to finance their exploration and development plans, coupled with their liquidity constraints; foreign currency exchange fluctuations and changes in the capital markets in locations where we operate; and the impact of government disruptions. In addition, market conditions, such as the trading prices for our stock, as well as the terms of any stock purchase plans may impact stock repurchases. At our discretion, we may engage in or discontinue stock repurchases at any time.

Impact of Britain’s vote to leave the European Union - Their vote in late June 2016 to leave the European Union could impact our local operations in the United Kingdom as well as the global economy.

Oil and gas market conditions - the level of petroleum industry exploration, development and production expenditures; the price of, volatility in pricing of, and the demand for crude oil and natural gas; drilling activity; drilling permits for and regulation of the shelf and the deepwater drilling; excess productive capacity; crude and product inventories; LNG supply and demand; seasonal and other adverse weather conditions that affect the demand for energy; severe weather conditions, such as tornadoes and hurricanes, that affect exploration and production activities; Organization of Petroleum Exporting Countries (“OPEC”) policy and the adherence by OPEC nations to their OPEC production quotas.

Litigation and changes in laws or regulatory conditions - the potential for litigation or proceedings and our ability to obtain adequate insurance on commercially reasonable terms; the legislative, regulatory and business environment in the U.S. and other countries in which we operate; outcome of government and legal proceedings, as well as costs arising from compliance and ongoing or additional investigations in any of the countries where the Company does business; new laws, regulations and policies that could have a significant impact on the future operations and conduct of all businesses; laws, regulations or restrictions on hydraulic fracturing; any restrictions on new or ongoing offshore drilling or permit and operational delays or program reductions as a result of the regulations in the Gulf of Mexico and other areas of the world; changes in export control laws or exchange control laws; the discovery of new environmental remediation sites; changes in environmental regulations; the discharge of hazardous materials or hydrocarbons into the environment; restrictions on doing business in countries subject to sanctions; customs clearance procedures; changes in accounting standards; changes in tax laws or tax rates in the jurisdictions in which we operate; resolution of tax assessments or audits by various tax authorities; and the ability to fully utilize our tax loss carry forwards and tax credits.

Baker Hughes is a leading supplier of oilfield services, products, technology and systems to the worldwide oil and natural gas industry. The Company’s 34,000 employees today work in more than 80 countries helping customers find, evaluate, drill, produce, transport and process hydrocarbon resources. For more information about Baker Hughes, visit: www.bakerhughes.com.